---
kind: "section"
citation: "42 U.S.C. § 6249"
title: "42"
title_heading: "The Public Health and Welfare"
number: "6249"
heading: "Contracting for petroleum product and facilities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/6249"
units:
  - "Chapter 77 — Energy Conservation"
  - "Subchapter I — Domestic Supply Availability"
  - "Part C — Authority To Contract for Petroleum Product Not Owned by United States"
---

# §6249. Contracting for petroleum product and facilities

- (a) **In general—** Subject to the other provisions of this part, the [Secretary](/usc/42/6202.md?p=1) may contract—
  - (1) for storage, in otherwise unused [Strategic Petroleum Reserve](/usc/42/6232.md?p=11) facilities, of [petroleum product](/usc/42/6202.md?p=3) not owned by the [United States](/usc/42/6202.md?p=5); and
  - (2) for storage, in [storage facilities](/usc/42/6232.md?p=10) other than those of the [Reserve](/usc/42/6232.md?p=9), of [petroleum product](/usc/42/6202.md?p=3) either owned or not owned by the [United States](/usc/42/6202.md?p=5).
- (b) **Conditions—**
  - (1) [Petroleum product](/usc/42/6202.md?p=3) stored pursuant to such a contract shall, until the expiration, termination, or other conclusion of the contract, be a part of the [Reserve](/usc/42/6232.md?p=9) and subject to the [Secretary](/usc/42/6202.md?p=1)’s authority under part B.
  - (2) The [Secretary](/usc/42/6202.md?p=1) may enter into a contract for storage of [petroleum product](/usc/42/6202.md?p=3) under [subsection (a)](#a) only if—
    - (A) the [Secretary](/usc/42/6202.md?p=1) determines (i) that entering into one or more contracts under such subsection would achieve benefits comparable to the acquisition of an equivalent amount of [petroleum product](/usc/42/6202.md?p=3), or an equivalent volume of storage capacity, for the [Reserve](/usc/42/6232.md?p=9) under part B, and (ii) that, because of budgetary constraints, the acquisition of an equivalent amount of [petroleum product](/usc/42/6202.md?p=3) or volume of storage space for the [Reserve](/usc/42/6232.md?p=9) cannot be accomplished under part B; and
    - (B) the [Secretary](/usc/42/6202.md?p=1) notifies each House of the Congress of the determination and identifies in the notification the location, type, and ownership of storage and [related facilities](/usc/42/6232.md?p=8) proposed to be included, or the volume, type, and ownership of [petroleum products](/usc/42/6202.md?p=3) proposed to be stored, in the [Reserve](/usc/42/6232.md?p=9), and an estimate of the proposed benefits.
  - (3) A contract entered into under [subsection (a)](#a) shall not limit the discretion of the President or the [Secretary](/usc/42/6202.md?p=1) to conduct a drawdown and sale of [petroleum products](/usc/42/6202.md?p=3) from the [Reserve](/usc/42/6232.md?p=9).
  - (4) A contract entered into under [subsection (a)](#a) shall include a provision that the obligation of the [United States](/usc/42/6202.md?p=5) to make payments under the contract in any fiscal year is subject to the availability of appropriations.
- (c) **Charge for storage—** The [Secretary](/usc/42/6202.md?p=1) may store [petroleum product](/usc/42/6202.md?p=3) pursuant to a contract entered into under [subsection (a)(1)](#a-1) with or without charge or may pay a fee for its storage.
- (d) **Duration—** Contracts entered into under [subsection (a)](#a) may be of such duration as the [Secretary](/usc/42/6202.md?p=1) considers necessary or appropriate.
- (e) **Binding arbitration—** The [Secretary](/usc/42/6202.md?p=1) may agree to binding arbitration of disputes under any contract entered into under [subsection (a)](#a).
- (f) **Availability of funds—** The [Secretary](/usc/42/6202.md?p=1) may utilize such funds as are available in the SPR Petroleum Account to carry out the activities described in [subsection (a)](#a), and may obligate and expend such funds to carry out such activities, in advance of the receipt of [petroleum products](/usc/42/6202.md?p=3).

## Source credit

(Pub. L. 94–163, title I, § 171, as added Pub. L. 101–383, § 6(a)(4), Sept. 15, 1990, 104 Stat. 729; amended Pub. L. 102–486, title XIV, § 1403, Oct. 24, 1992, 106 Stat. 2994; Pub. L. 106–469, title I, § 103(20), Nov. 9, 2000, 114 Stat. 2033.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 171 of Pub. L. 94–163 was renumbered section 191 and was classified to section 6251 of this title, prior to repeal by Pub. L. 109–58.

### Amendments

2000—Subsec. (b)(2)(B). Pub. L. 106–469, § 103(20)(A), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the Secretary notifies each House of the Congress of such determination and includes in such notification the same information required under section 6234(e) of this title with regard to storage and related facilities proposed to be included, or petroleum product proposed to be stored, in the Reserve.”

Subsec. (b)(3). Pub. L. 106–469, § 103(20)(B), substituted “sale of petroleum products from” for “distribution of”.

1992—Subsec. (f). Pub. L. 102–486 added subsec. (f).